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Oklahoma Senate Bill SB196

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB196 Compare Versions

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28-ENGROSSED SENATE
29-BILL NO. 196 By: Rader of the Senate
29+SENATE FLOOR VERSION
30+February 4, 2021
3031
31- and
3232
33- Boatman of the House
33+SENATE BILL NO. 196 By: Rader
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38-[ Oklahoma Professional E mployer Organization
39-Recognition and Regi stration Act - registration and
40-tax requirements - financial statements and payment
41-of payroll taxes - effective date ]
38+
39+
40+
41+An Act relating to the Oklahoma Professional E mployer
42+Organization Recognition and Regi stration Act;
43+amending 40 O.S. 2011, Sections 600.4, as amended by
44+Section 1, Chapter 238, O.S.L. 2012 and 600.6 (40
45+O.S. Supp. 2020, Section 600.4), which relate to
46+registration and tax requirements; authorizing an
47+attorney to certify certain financial statements and
48+payment of payroll taxes; and providing an effective
49+date.
50+
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4655 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
47-SECTION 1. AMENDATORY 40 O.S. 2011, Section 600.2, is
48-amended to read as follows:
49-Section 600.2. 1. “Client” means any person who e nters into a
50-coemployment relationship as a c oemployer with a professional
51-employer organization (PEO);
52-2. “Coemployer” means either a PEO or a client;
53-3. “Coemployment relationship ” means:
54-a. as between coemployers, a relationship whereby the
55-rights, duties and obligations of an employer which
56-arise out of an employment relationship have been
57-allocated between coemployers pursuant to a
58-professional employer agreement and the Oklahoma
59-Professional Employer Organization Recognition and
60-Registration Act, an d which is intended to be an
56+SECTION 1. AMENDATORY 40 O.S. 2011, Section 600.4, as
57+amended by Section 1, Chapter 238, O.S.L. 2012 (40 O.S. Supp. 2020,
58+Section 600.4), is amended to read as follows:
59+Section 600.4. A. Registration required. Except as otherwise
60+provided in the Oklahoma Professional Employer Organization
61+Recognition and Registration Act, no person shall, unle ss the person
62+is registered as a PEO or PEO Group under the Oklahoma Professional
63+Employer Organization Recognition and Registration Act, provide,
64+advertise, or otherwise hold itself out as providing professional
65+employer services in this state.
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87-ongoing relationship, rather than a temporary or
88-project specific project-specific relationship, and
89-b. as between each PEO and a covered employee as to which
90-a professional employer agreement applies, an
91-employment relationship wh ereby:
92-(1) such PEO is entitled to enforce those rights, and
93-obligated to perform those duties and
94-obligations, allocated to such PEO by the
95-professional employer agreement and the Oklahoma
96-Professional Employer Organization Recognition
97-and Registration Act, and
98-(2) such covered employee is entitled to enforce
99-against such PEO those duties and obligations
100-allocated to the PEO by the professional employer
101-agreement and the Oklahoma Professional Employer
102-Organization Recognition and Registration Act;
103-c. as between each client and a covered employee to which
104-a professional employer agreement applies and
105-employment relationship whereby:
106-(1) such client is entitled to enforce those rights,
107-and obligated to provide a nd perform those
108-employer obligations allocated to such client by
109-the professional employer agreement and the
110-Oklahoma Professional Employer Organization
93+B. Registration information.
94+1. Each PEO or PEO Group required to be registered under the
95+Oklahoma Professional Employer Organization Recognition and
96+Registration Act shall provide the Insurance Commissioner with
97+information required by the Commissioner on forms p rescribed by the
98+Commissioner. Pursuant to paragraph 2 of this subsection, a PEO or
99+PEO Group may use a qualified assurance organization as approved by
100+the Commissioner to provide services related to the registration of
101+the PEO or PEO Group. A PEO or PEO Group may authorize an assuranc e
102+organization to act on behalf of the PEO or PEO Group in complying
103+with the registration requirements set forth in the Oklahoma
104+Professional Employer Organization Recognition and Registration Act,
105+including, but not limite d to, electronic filings of info rmation and
106+payment of registration fees. At a mi nimum, PEOs, PEO Groups or an
107+approved assurance organization acting on behalf of the PEO or PEO
108+Group, shall provide the following information:
109+a. the name or names under wh ich the PEO or PEO Group
110+conducts business,
111+b. the address of the principal place of business of the
112+PEO or PEO Group and the address of each office it
113+maintains in this state,
114+c. the PEO’s or PEO Group’s taxpayer or employer
115+identification number,
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137-Recognition and Registration Act and whereby such
138-client is responsible for any employer right or
139-obligation not otherwise allocated by the
140-professional employer agreement of the Oklahoma
141-Professional Employer Organization Recognition
142-and Registration Act, and
143-(2) such covered employee is entitled to enforce
144-against such client those duties and obligations
145-allocated to the client by the professional
146-employer agreement and the Oklahoma Professional
147-Employer Organization Recognition and
148-Registration Act and any other duties and
149-obligations of an employer not otherwise
150-allocated by the professional employer ag reement
151-or the Oklahoma Professional Employer
152-Organization Recognition and Registration Act;
153-4. “Commissioner” means the Insurance Commissioner of the State
154-of Oklahoma;
155-5. “Covered Employee” means an individual having a coemployment
156-relationship with a PEO and a client who have entered into a
157-professional employer agreement with respect to such person, and
158-shall include the client ’s officers, directors, shareholders,
159-partners and managers to the extent such persons act as operational
160-managers or perform services for the client;
143+d. a list by jurisdiction of each name under which the
144+PEO or PEO Group has operated in t he preceding five
145+(5) years, including any alternative names, names of
146+predecessors and, if known, successor business
147+entities,
148+e. a statement of ownership, which shall inclu de the name
149+and evidence of the business experience of any person
150+that, individually or acting in concert with one or
151+more other persons, owns or controls, directly or
152+indirectly, twenty-five percent (25%) or more of the
153+equity interests of the PEO or PEO Group,
154+f. a statement of managem ent, which shall include the
155+name and evidence of the business experience of any
156+person who serves as president, chief executive
157+officer, or otherwise has the authority to act as
158+senior executive officer of the PEO or PEO Gr oup, and
159+g. a financial statemen t setting forth the financial
160+condition of the PEO or PEO Group, as of a date not
161+earlier than one hundred eighty (180) days prior to
162+the date submitted to the Commissioner, prepared in
163+accordance with generally accepted acc ounting
164+principles, and certified by an attorney licensed to
165+practice in the juris diction in which such attorney is
166+located or audited or reviewed by an independent
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187-6. “Department” means the Department of Insurance of the State
188-of Oklahoma;
189-7. “Person” means any individual, partnership, corporation,
190-limited liability company, association, or any other form of legally
191-recognized entity;
192-8. “Professional employer agreement ” means a written contract
193-by and between a client and a PEO under which the PEO and the client
194-agree to establish a coemployment relationship and which satisfies
195-the requirements of subsection C of Section 7 of this act 600.7 of
196-this title;
197-9. “Professional Employer Orga nization” or PEO means any person
198-engaged in the business of providing professional employer services.
199-A person engaged in the business of providing professional employer
200-services shall be subject to registration under the Okla homa
201-Professional Employer O rganization Recognition and Registration Act
202-regardless of its use of the term “professional employer
203-organization”, “PEO”, “staff leasing company ”, “registered staff
204-leasing company”, “employee leasing company ”, or any other name;
205-10. “Professional employer services” means the service of
206-entering into coemployment relationships under the Oklahoma
207-Professional Employer Organization Recognition and Registration Act,
208-in which, except in isolated instances, all or a majority of the
209-employees providing service s to a client or to a division or work
210-unit of client are covered employees;
194+certified public accountant licensed to practice in
195+the jurisdiction in which such accou ntant is located.
196+A PEO Group may submit combined or consolidated
197+audited or reviewed financial statements to meet the
198+requirements of this section.
199+2. The financial statement required by subparagraph g of
200+paragraph 1 of this subsection may be dated as o f a date that is not
201+earlier than three hundred sixty -five (365) days before the date on
202+which the application is submitted in the event the PEO or P EO Group
203+provides the following:
204+a. evidence that is acceptable to the Commissioner that
205+it is licensed or registered in good standing in
206+another state with equal or greater requirements than
207+the requirements of the Oklahoma Professional Employer
208+Organization Recognition and Registration Act,
209+b. quarterly financial statements of management for each
210+calendar quarter as of the most recent audit that
211+demonstrate continuing financial operations acc eptable
212+to the Commissioner, and
213+c. the certification of an attorney or an independent
214+Certified Public Accountant that as of the end of the
215+most recent calendar quarter, the PEO or PEO Group has
216+paid all of its state and federal payroll taxes,
217+health and workers’ compensation premiums, and
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237-11. “Qualified attorney” means an attorney licensed to practice
238-in the jurisdiction in which such attorney is located who is
239-competent based on the attorney’s education, training and experience
240-in matters requiring a statement, registration or certification for
241-a Professional Employer Organization (PEO) involving federal and
242-State of Oklahoma income tax withholding payment requirements,
243-payment of employer-sponsored health insurance premiums, payment of
244-State of Oklahoma unemployment and workers’ compensation insurance
245-premiums, payment of financial contributions to employee retirement
246-plans and review or preparation of financial statements prepared in
247-accordance with generally acc epted accounting principles;
248-12. “Registrant” means a PEO registered under the Oklahoma
249-Professional Employer Organization Recognition and Registration Act;
250-and
251-12. 13. “Temporary help services” means a service whereby a
252-person hires workers and assigns them to a person for a temporary
253-time period or nonpermanent basis to support or supplement the other
254-person’s workforce in special work situations such as, but not
255-limited to, employee absences, temporary skill shortages, seasonal
256-workloads, and special assignments and projects. Temporary help
257-services shall not be deemed professional employer services.
258-SECTION 2. AMENDATORY 40 O.S. 2011, Section 600.4, as
259-amended by Section 1, Chapter 238, O.S.L. 2012 (40 O.S. Supp. 2020,
260-Section 600.4), is amended to read as follows:
245+contributions to employee retirement plans in a timely
246+and appropriate manner.
247+3. For purposes of the Oklahoma Professional Employer
248+Organization Recognition and Regi stration Act, “assurance
249+organization” means an independent entity approved by the
250+Commissioner to certify the qualifications of a P EO or PEO Group for
251+registration under this section and Section 600.6 of this title and
252+any related requirements and procedu res. To be considered for
253+approval as an independent and qualified assurance organization, the
254+assurance organization shall submit a written request for approval
255+to the Commissioner. The written request shall include, but not be
256+limited to, the following :
257+a. evidence that the assurance organization is
258+independent and has an established national program
259+for the accreditation and finan cial assurance of PEOs
260+and PEO Groups based on requirements similar to the
261+requirements of the Oklahoma Professional Employe r
262+Organization Recognition and Registration Act, and any
263+rules promulgated for the implementation of the
264+Oklahoma Professional Emplo yer Organization
265+Recognition and Registration Act,
266+b. evidence that the assurance organizati on has
267+documented qualifications , standards, procedures, and
268+financial assurance acce ptable to the Commissioner and
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287-Section 600.4. A. Registration required. Except as otherwise
288-provided in the Oklahoma Professional Employer Organization
289-Recognition and Registration Act, no person shall, unle ss the person
290-is registered as a PEO or PEO Group under the Oklahoma Professional
291-Employer Organization Recognition and Registration Act, provide,
292-advertise, or otherwise hold itself out as providing professional
293-employer services in this state.
294-B. Registration information.
295-1. Each PEO or PEO Group required to be registered under the
296-Oklahoma Professional Employer Organization Recognition and
297-Registration Act shall provide the Insurance Commissioner with
298-information required by the Commissioner on forms p rescribed by the
299-Commissioner. Pursuant to paragraph 2 of this subsection, a PEO or
300-PEO Group may use a qualified assurance organization as approved by
301-the Commissioner to provide services related to the registration of
302-the PEO or PEO Group. A PEO or PEO Group may authorize an assuranc e
303-organization to act on behalf of the PEO or PEO Group in complying
304-with the registration requirements set forth in the Oklahoma
305-Professional Employer Organization Recognition and Registration Act ,
306-including, but not limite d to, electronic filings of info rmation and
307-payment of registration fees. At a minimum, PEOs, PEO Groups or an
308-approved assurance organization acting on behalf of the PEO or PEO
309-Group, shall provide the following information:
296+is licensed or otherwise approved by one or more
297+states to certify the qualifications of PEOs or PEO
298+Groups,
299+c. an agreement to provide info rmation, compliance
300+monitoring services, and a level of financial
301+assurance as deemed acceptable by the Commissioner,
302+d. an agreement to provide the Commissioner wi th an
303+application that has been executed by each PEO or PEO
304+Group requesting alternative reg istration under this
305+section and Section 600.6 of this title and related
306+requirements and procedures in a form approved by the
307+Commissioner. The application shall:
308+(1) authorize the assurance organization to share
309+with the Commissioner any application and
310+compliance reporting informatio n required under
311+the Oklahoma Professional Employer O rganization
312+Recognition and Registration Act that has been
313+provided to the assu rance organization by the PEO
314+or PEO Group,
315+(2) authorize the Commissioner to accept informa tion
316+shared by the assurance org anization for
317+registration or renewal of registration of the
318+PEO or PEO Group as if the information was
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336-a. the name or names under wh ich the PEO or PEO Group
337-conducts business,
338-b. the address of the principal place of business of the
339-PEO or PEO Group and the address of each office it
340-maintains in this state,
341-c. the PEO’s or PEO Group’s taxpayer or employer
342-identification number,
343-d. a list by jurisdiction of each name under which the
344-PEO or PEO Group has operated in the preceding five
345-(5) years, including any alternative names, names of
346-predecessors and, if known, successor business
347-entities,
348-e. a statement of ownership, which shall inclu de the name
349-and evidence of the business experience of any person
350-that, individually or acting in concert with one or
351-more other persons, owns or controls, directly or
352-indirectly, twenty-five percent (25%) or more of the
353-equity interests of the PEO or PEO Group,
354-f. a statement of managem ent, which shall include the
355-name and evidence of the business experience of any
356-person who serves as president, chief executive
357-officer, or otherwise has the authority to act as
358-senior executive officer of the PEO or PEO Gr oup, and
346+provided directly to the Com missioner by the PEO
347+or PEO Group,
348+(3) provide the certification of the PEO or PEO Group
349+that the information provided by th e assurance
350+organization to the Commissioner is true and
351+complete and that the PEO or PEO Group is in full
352+and complete compliance w ith all requirements of
353+the Oklahoma Professional Employer Organization
354+Recognition and Regi stration Act, and
355+(4) provide the certification of the assurance
356+organization that th e PEO or PEO Group is in
357+compliance with the standards and procedures of
358+the assurance organization which are similar to
359+the requirements of the Oklahoma Professional
360+Employer Organization Recognition an d
361+Registration Act and is qualified for
362+registration or renewal of registration under the
363+Oklahoma Professional Employer Organizatio n
364+Recognition and Registration Act,
365+e. an agreement to provide written notice to the
366+Commissioner within two (2) business da ys of
367+determination by the assurance organization of the
368+failure of a PEO or PEO Group to meet the
369+qualifications for registration u nder the Oklahoma
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385-g. a financial statemen t setting forth the financial
386-condition of the PEO or PEO Group, as of a date not
387-earlier than one hundred eighty (180) days prior to
388-the date submitted to the Commissioner, prepared in
389-accordance with generally accepted acc ounting
390-principles, and certified by a qualified attorney or
391-audited or reviewed by an independent certified public
392-accountant licensed to practice in the jurisdiction in
393-which such accountant is located. A PEO Group m ay
394-submit combined or consolidated au dited or reviewed
395-financial statements to meet the requirements of this
396-section.
397-2. The financial statement required by subparagraph g of
398-paragraph 1 of this subsection may be dated as o f a date that is not
399-earlier than three hundred sixty -five (365) days before the date on
400-which the application is submitted in the event the PEO or PEO Group
401-provides the following:
402-a. evidence that is acceptable to the Commissioner that
403-it is licensed or registered in good standing in
404-another state with equal or greater re quirements than
405-the requirements of the Oklahoma Professional Employer
406-Organization Recognition and Registration Act,
407-b. quarterly financial statements of management for each
408-calendar quarter as of the most recent audit that
397+Professional Employer Organization Recognition and
398+Registration Act or det ermination by the assurance
399+organization of the failure of the PEO or PEO Group to
400+meet the qualifications for accreditation or
401+certification by the assurance organ ization, and
402+f. an agreement to share with the Commissioner in a
403+timely manner the informati on and supporting
404+documentation provided to the assurance organization
405+by the PEO or PEO Group similar to the information and
406+documentation required for registratio n or renewal of
407+registration under the Oklahoma Professional Employer
408+Organization Recogniti on and Registration Act.
409+C. Initial registration.
410+1. Each PEO or PEO Group operatin g within this state as of
411+November 1, 2002, shall complete its initial registra tion not later
412+than one hundred eighty (180) days after the end of the PEO ’s or PEO
413+Group’s first fiscal year ending after N ovember 1, 2002.
414+2. Each PEO or PEO Group not operat ing within this state as of
415+November 1, 2002, shall complete its initial regist ration prior to
416+commencement of operations within this state. A registration is
417+valid for a term of one (1) year.
418+D. Renewal. 1. A registration expires one (1) year followin g
419+the registration unless it is renewed pursuant to this subsection.
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435-demonstrate continuing financia l operations acceptable
436-to the Commissioner, and
437-c. the certification of a qualified attorney or an
438-independent Certified Public Accountant that as of the
439-end of the most recent calendar quarter, the PEO or
440-PEO Group has paid al l of its state and federal
441-payroll taxes, health and workers’ compensation
442-premiums, and contributions to employee retirement
443-plans in a timely and appropriate manner.
444-3. For purposes of the Oklahoma Professional Employer
445-Organization Recognition and Regi stration Act, “assurance
446-organization” means an independent entity approved by the
447-Commissioner to certify the qualifications of a P EO or PEO Group for
448-registration under this section and Section 600.6 of this title and
449-any related requirements and procedu res. To be considered for
450-approval as an independent and qualified assurance organization, the
451-assurance organization shall submit a written request for approval
452-to the Commissioner. The written request shall include, but not be
453-limited to, the following :
454-a. evidence that the assur ance organization is
455-independent and has an established national program
456-for the accreditation and finan cial assurance of PEOs
457-and PEO Groups based on requirements similar to the
458-requirements of the Oklahoma Professional Employe r
447+Before expiration of the registration, a registrant may renew the
448+registration for an additional one -year term if the registrant:
449+a. remains in good standing and otherwise is entitled to
450+be registered pursuant to the Oklahoma Professional
451+Employer Organization Reco gnition and Registration
452+Act,
453+b. files with the Commissioner a renewal application on a
454+form prescribed by the Commissioner, and
455+c. pays to the Commissioner a renewal fee as pro vided for
456+in Section 600.5 of this title.
457+2. A registration shall be considere d late thirty (30) days
458+after the renewal date. Any registration received more than thirty
459+(30) days after the renewal date shall be accompanied by a late
460+registration fee of F ive Hundred Dollars ($500.00).
461+E. Group registration. Any two or more PEOs he ld under common
462+control of any other person or persons acting in concert may be
463+registered as a PEO Group. A PEO Group may satisfy any reporting
464+and financial requirements of t his registration law on a
465+consolidated basis.
466+F. Electronic filing and complia nce. A PEO, PEO Group or an
467+approved independent and qualified assurance organization as
468+provided for in subsection B of th is section may electronically
469+submit filings in confo rmance with Sections 15-101 through 15-121 of
470+Title 12A of the Oklahoma Statute s. Electronically submitted
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485-Organization Recognition a nd Registration Act, and any
486-rules promulgated for the implementation of the
487-Oklahoma Professional Emplo yer Organization
488-Recognition and Registration Act,
489-b. evidence that the assurance organizati on has
490-documented qualifications , standards, procedures , and
491-financial assurance acce ptable to the Commissioner and
492-is licensed or otherwise approved by one or more
493-states to certify the qualifications of PEOs or PEO
494-Groups,
495-c. an agreement to provide info rmation, compliance
496-monitoring services, and a level of financial
497-assurance as deemed acceptable by the Commissioner,
498-d. an agreement to provide the Commissioner wi th an
499-application that has been executed by each PEO or PEO
500-Group requesting alternative reg istration under this
501-section and Section 600.6 of this title and related
502-requirements and procedures in a form approved by the
503-Commissioner. The application shall:
504-(1) authorize the assurance organization to share
505-with the Commissioner any application and
506-compliance reporting informatio n required under
507-the Oklahoma Professional Employer O rganization
508-Recognition and Registration Act that has been
498+filings include, but are not limited to, applications, document s,
499+reports, and other filings re quired under the Oklahoma Uniform
500+Electronic Transactions Act.
501+G. De minimis exemption.
502+1. A PEO is exempt from the registration r equirements payable
503+under the Oklahoma Professional Employer Organization Recognition
504+and Registration Act if such PEO:
505+a. submits a properly executed request for exemption on a
506+form provided by the Department,
507+b. is domiciled outside this state and is lic ensed or
508+registered as a professional employer organization in
509+another state that has the sa me or greater
510+requirements as the Oklahoma Professional Employer
511+Organization Recogni tion and Registration Act,
512+c. does not maintain an office in this state or soli cit
513+in any manner clients located or domiciled within this
514+state, and
515+d. does not have more than twenty-five covered employe es
516+employed or domiciled in this state.
517+2. An exemption of a professional employer organization from
518+the registration requirements under the Oklahoma Professional
519+Employer Organization Recognition and Registration Act shall be
520+valid for one (1) year, subj ect to renewal.
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535-provided to the assu rance organization by the PEO
536-or PEO Group,
537-(2) authorize the Commissioner to accept informa tion
538-shared by the assurance org anization for
539-registration or renewal of registration of the
540-PEO or PEO Group as if the information was
541-provided directly to the Com missioner by the PEO
542-or PEO Group,
543-(3) provide the certification of the PEO or PEO Group
544-that the information provided by th e assurance
545-organization to the Commissioner is true and
546-complete and that the PEO or PEO Group is in full
547-and complete compliance w ith all requirements of
548-the Oklahoma Professional Employer Organization
549-Recognition and Regi stration Act, and
550-(4) provide the certification of the assur ance
551-organization that th e PEO or PEO Group is in
552-compliance with the standards and procedures of
553-the assurance organization which are similar to
554-the requirements of the Oklahoma Professional
555-Employer Organization Recognition an d
556-Registration Act and is qu alified for
557-registration or renewal of registration under the
548+H. List. The Commissioner shall mai ntain a list of
549+professional employer organizations registered or exempted unde r the
550+Oklahoma Professional Employer Organization Recognition and
551+Registration Act and a lis t of approved assurance organiza tions.
552+I. Forms. The Commissioner may prescribe for ms necessary to
553+promote the efficient administration of this section.
554+J. The Commissioner is authorized to promulgate reasonable
555+rules necessary for the administration an d implementation of this
556+section.
557+K. The Commissioner may reject an application for registration,
558+renewal of registration, or for an exemption from registration if
559+the Commissioner finds that:
560+1. The application is not fully completed or properly execute d;
561+2. Documents required to sup plement the application are not
562+included in the appli cation packet or are inadequate;
563+3. The registration fee is not submitted with the application;
564+4. The applicant or any person named in the application
565+misrepresents material in the application;
566+5. The applicant, or any of its officers, is determined by the
567+Commissioner to lack good moral character, business integrity, or
568+financial responsibility; or
569+6. The controlling person has violated a provision of the
570+Oklahoma Professional Employer Organization Recognition and
571+Registration Act.
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584-Oklahoma Professional Employer Organizatio n
585-Recognition and Registration Act,
586-e. an agreement to provide written notice to the
587-Commissioner within two (2) business da ys of
588-determination by the a ssurance organization of the
589-failure of a PEO or PEO Group to meet the
590-qualifications for registration u nder the Oklahoma
591-Professional Employer Organization Recognition and
592-Registration Act or det ermination by the assurance
593-organization of the failure of t he PEO or PEO Group to
594-meet the qualifications for accreditation or
595-certification by the assurance organ ization, and
596-f. an agreement to share with the Commissioner in a
597-timely manner the informati on and supporting
598-documentation provided to the assurance or ganization
599-by the PEO or PEO Group similar to the information and
600-documentation required for registratio n or renewal of
601-registration under the Oklahoma Professional Employer
602-Organization Recogniti on and Registration Act.
603-C. Initial registration.
604-1. Each PEO or PEO Group operatin g within this state as of
605-November 1, 2002, shall complete its initial registra tion not later
606-than one hundred eighty (180) days after the end of the PEO ’s or PEO
607-Group’s first fiscal year ending after N ovember 1, 2002.
599+SECTION 2. AMENDATORY 40 O.S. 2011, Section 600.6, is
600+amended to read as follows:
601+Section 600.6. A. Net worth and bonding. Each PEO shall
602+maintain either:
603+1. A minimum net worth of Fifty Thousand Dollars ($50,000.00),
604+as reflected in the financial statements submitted to the
605+Commissioner with the initial registration and each annual renewal;
606+or
607+2. A bond or securities with a minimum market value of Fifty
608+Thousand Dollars ($50,000.00), held by a depository designated by
609+the Commissioner, securing p ayment by the PEO of all taxes, wages,
610+benefits or other entitlement due to or with respect to a covered
611+employee, if the PEO does not make such payments when due. Any bo nd
612+or securities deposited under this subsection shall not be included
613+for the purpose of calculation of the minimum net wort h required by
614+this subsection.
615+B. Payroll tax payments. A PEO shall submit to the
616+Commissioner, within ninety (90) days after the end of each calendar
617+quarter, a statement by an attorney or an independent certified
618+public accountant that all applicable state payroll ta xes for
619+covered employees located in this state have been paid o n a timely
620+basis for that quarter.
621+C. Record confidentiality. All records, reports and other
622+information obtained from a PEO under the Oklahoma Professional
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634-2. Each PEO or PEO Group not operat ing within this state as of
635-November 1, 2002, shall complete its initial regist ration prior to
636-commencement of operations within this state. A registration is
637-valid for a term of one (1) year.
638-D. Renewal. 1. A registration expi res one (1) year followin g
639-the registration unless it is renewed pursuant to this subsection.
640-Before expiration of the registration, a registrant may renew the
641-registration for an additional one -year term if the registrant:
642-a. remains in good standing and otherwise is entitled to
643-be registered pursuant to the Oklahoma Professional
644-Employer Organization Reco gnition and Registration
645-Act,
646-b. files with the Commissioner a renewal application on a
647-form prescribed by the Commissioner, and
648-c. pays to the Commissi oner a renewal fee as pro vided for
649-in Section 600.5 of this title.
650-2. A registration shall be considere d late thirty (30) days
651-after the renewal date. Any registration received more than thirty
652-(30) days after the renewal date shall be accompanied by a l ate
653-registration fee of F ive Hundred Dollars ($500.00).
654-E. Group registration. Any two or more PEOs he ld under common
655-control of any other person or persons acting in concert may be
656-registered as a PEO Group. A PEO Group may satisfy any reporting
657-
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683-and financial requirements of t his registration law on a
684-consolidated basis.
685-F. Electronic filing and complia nce. A PEO, PEO Group or an
686-approved independent and qualified assurance organization as
687-provided for in subsection B of th is section may electronicall y
688-submit filings in confo rmance with Sections 15-101 through 15-121 of
689-Title 12A of the Oklahoma Statute s. Electronically submitted
690-filings include, but are not limited to, applications, document s,
691-reports, and other filings re quired under the Oklahoma Un iform
692-Electronic Transactions Act.
693-G. De minimis exemption.
694-1. A PEO is exempt from the registration r equirements payable
695-under the Oklahoma Professional Employer Organization Recognition
696-and Registration Act if such PEO:
697-a. submits a properly executed r equest for exemption on a
698-form provided by the Department,
699-b. is domiciled outside this state and is lic ensed or
700-registered as a professional employer organization in
701-another state that has the sa me or greater
702-requirements as the Oklahoma Professional Empl oyer
703-Organization Recogni tion and Registration Act,
704-c. does not maintain an office in this state or soli cit
705-in any manner clients located or domiciled within this
706-state, and
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733-d. does not have more than twenty-five covered employe es
734-employed or domiciled in this state.
735-2. An exemption of a professional employer organization from
736-the registration requirements under the Oklahoma Professional
737-Employer Organization Recognition and Registration Act shall be
738-valid for one (1) year, subj ect to renewal.
739-H. List. The Commissioner shall mai ntain a list of
740-professional employer organizations registered or exempted unde r the
741-Oklahoma Professional Employer Organization Recognition and
742-Registration Act and a lis t of approved assurance organiza tions.
743-I. Forms. The Commi ssioner may prescribe for ms necessary to
744-promote the efficient administration of this section.
745-J. The Commissioner is authorized to promulgate reasonable
746-rules necessary for the administration an d implementation of this
747-section.
748-K. The Commissioner may r eject an application for registration,
749-renewal of registration, or for an exemption from registration if
750-the Commissioner finds that:
751-1. The application is not fully completed or properly execute d;
752-2. Documents required to sup plement the application are not
753-included in the appli cation packet or are inadequate;
754-3. The registration fee is not submitted with the application;
755-4. The applicant or any person named in the application
756-misrepresents material in the application;
757-
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783-5. The applicant, or any of its o fficers, is determined by the
784-Commissioner to lack good moral character, business integrity, or
785-financial responsibility; or
786-6. The controlling person has violated a provision of the
787-Oklahoma Professional Employer Organization Recognition and
788-Registration Act.
789-SECTION 3. AMENDATORY 40 O.S. 2011, Section 600.6, is
790-amended to read as follows:
791-Section 600.6. A. Net worth and bonding. Each PEO shall
792-maintain either:
793-1. A minimum net worth of Fifty Thousand Dollars ($50,000.00),
794-as reflected in the financial statements submitted to the
795-Commissioner with the initial registration and each annual renewal;
796-or
797-2. A bond or securities with a minimum market value of Fifty
798-Thousand Dollars ($50,000.00), held by a depository designated by
799-the Commissioner, securing p ayment by the PEO of all taxes, wages,
800-benefits or other entitlement due to or with respect to a covered
801-employee, if the PEO does not make such payments when due. Any bo nd
802-or securities deposited under this subsection shall not b e included
803-for the purpose of calculation of the minimum net worth required by
804-this subsection.
805-B. Payroll tax payments. A PEO shall submit to the
806-Commissioner, within ninety (90) days after the end of each calendar
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833-quarter, a statement by a qualified attorney or an independent
834-certified public accountant that all applicable state payroll taxes
835-for covered employees located in this state have been paid o n a
836-timely basis for that quarter.
837-C. Record confidentiality. All records, reports and other
838-information obtained from a PEO under the Oklahoma Professional
839650 Employer Organization Recognition and Registration Act, except to
840651 the extent necessary for the pr oper administration of the Oklahoma
841652 Professional Employer Organization Recognition and Registration Act
842653 by the Department, shall be confi dential and shall not be published
843654 or open to public in spection other than to public employees in the
844655 performance of their public duties.
845-SECTION 4. This act shall become effective November 1, 2021.
846-Passed the Senate the 11th day of March, 2021.
847-
848-
849-
850- Presiding Officer of the Senate
851-
852-
853-Passed the House of Representatives the ____ day of __________,
854-2021.
855-
856-
857-
858- Presiding Officer of the House
859- of Representatives
860-
656+SECTION 3. This act shall become effective November 1, 2021.
657+COMMITTEE REPORT BY: COMMITTEE ON BUSINE SS, COMMERCE AND TOURISM
658+February 4, 2021 - DO PASS